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1 | | AN ACT concerning civil law. |
2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly: |
4 | | Section 5. The Code of Civil Procedure is amended by |
5 | | changing Section 15-1507 and by adding Sections 15-1507.2 and |
6 | | 15-1510.1 as follows: |
7 | | (735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507) |
8 | | Sec. 15-1507. Judicial Sale. |
9 | | (a) In General. Except as provided in Sections 15-1402 and |
10 | | 15-1403, upon entry of a judgment of foreclosure, the real |
11 | | estate which is the subject of the judgment shall be sold at a |
12 | | judicial sale in accordance with this Section 15-1507. |
13 | | (b) Sale Procedures. |
14 | | (1) Upon expiration of the reinstatement period and |
15 | | the redemption period in accordance with subsection (b) or |
16 | | (c) of Section 15-1603 or upon the entry of a judgment of |
17 | | foreclosure after the waiver of all rights of redemption, |
18 | | except as provided in subsection (g) of Section 15-1506, |
19 | | the real estate shall be sold at a sale as provided in this |
20 | | Article, on such terms and conditions as shall be |
21 | | specified by the court in the judgment of foreclosure. A |
22 | | sale may be conducted by any judge , or sheriff , or other |
23 | | person as set forth in paragraph (3) of subsection (f) of |
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1 | | Section 15-1506 . |
2 | | (2) Without limiting the general authority and powers |
3 | | of the court, the mortgagee, in a foreclosure under this |
4 | | Article, may request that the judge, sheriff, or other |
5 | | person conduct the sale either in person, online, or both, |
6 | | if available. |
7 | | (c) Notice of Sale. The mortgagee, or such other party |
8 | | designated by the court, in a foreclosure under this Article |
9 | | shall give public notice of the sale as follows: |
10 | | (1) The notice of sale shall include at least the |
11 | | following information, but an immaterial error in the |
12 | | information shall not invalidate the legal effect of the |
13 | | notice: |
14 | | (A) the name, address and telephone number of the |
15 | | person to contact for information regarding the real |
16 | | estate; |
17 | | (B) the common address and other common |
18 | | description (other than legal description), if any, of |
19 | | the real estate; |
20 | | (C) a legal description of the real estate |
21 | | sufficient to identify it with reasonable certainty; |
22 | | (D) a description of the improvements on the real |
23 | | estate; |
24 | | (E) the times specified in the judgment, if any, |
25 | | when the real estate may be inspected prior to sale; |
26 | | (F) the time and place of the sale , including: ; |
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1 | | (i) whether the sale will take place online, |
2 | | in person, or both; and |
3 | | (ii) the website where the online bidding may |
4 | | take place, if applicable; |
5 | | (G) the terms of the sale; |
6 | | (H) the case title, case number and the court in |
7 | | which the foreclosure was filed; |
8 | | (H-1) in the case of a condominium unit to which |
9 | | subsection (g) of Section 9 of the Condominium |
10 | | Property Act applies, the statement required by |
11 | | subdivision (g)(5) of Section 9 of the Condominium |
12 | | Property Act; |
13 | | (H-2) in the case of a unit of a common interest |
14 | | community to which subsection (g-1) of Section 18.5 of |
15 | | the Condominium Property Act applies, the statement |
16 | | required by subdivision (g-1) of Section 18.5 of the |
17 | | Condominium Property Act; and |
18 | | (I) such other information ordered by the Court. |
19 | | (2) The notice of sale shall be published at least 3 |
20 | | consecutive calendar weeks (Sunday through Saturday), once |
21 | | in each week, the first such notice to be published not |
22 | | more than 45 days prior to the sale, the last such notice |
23 | | to be published not less than 7 days prior to the sale, by: |
24 | | (i) (A) advertisements in a newspaper circulated to the |
25 | | general public in the county in which the real estate is |
26 | | located, in the section of that newspaper where legal |
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1 | | notices are commonly placed and (B) separate |
2 | | advertisements in the section of such a newspaper, which |
3 | | (except in counties with a population in excess of |
4 | | 3,000,000) may be the same newspaper, in which real estate |
5 | | other than real estate being sold as part of legal |
6 | | proceedings is commonly advertised to the general public; |
7 | | provided, that the separate advertisements in the real |
8 | | estate section need not include a legal description and |
9 | | that where both advertisements could be published in the |
10 | | same newspaper and that newspaper does not have separate |
11 | | legal notices and real estate advertisement sections, a |
12 | | single advertisement with the legal description shall be |
13 | | sufficient; in counties with a population of more than |
14 | | 3,000,000, the notice required by this item (B) shall be |
15 | | published in a newspaper different from the newspaper that |
16 | | publishes the notice required by item (A), and the |
17 | | newspaper in which the notice required by this item (B) is |
18 | | published shall be a newspaper published in the township |
19 | | in which the real estate is located; and (ii) such other |
20 | | publications as may be further ordered by the court. |
21 | | (3) The party who gives notice of public sale in |
22 | | accordance with subsection (c) of Section 15-1507 shall |
23 | | also give notice to all parties in the action who have |
24 | | appeared and have not theretofore been found by the court |
25 | | to be in default for failure to plead. Such notice shall be |
26 | | given in the manner provided in the applicable rules of |
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1 | | court for service of papers other than process and |
2 | | complaint, not more than 45 days nor less than 7 days prior |
3 | | to the day of sale. After notice is given as required in |
4 | | this Section a copy thereof shall be filed in the office of |
5 | | the clerk of the court entering the judgment, together |
6 | | with a certificate of counsel or other proof that notice |
7 | | has been served in compliance with this Section. |
8 | | (4) The party who gives notice of public sale in |
9 | | accordance with subsection (c) of Section 15-1507 shall |
10 | | again give notice in accordance with that Section of any |
11 | | adjourned sale; provided, however, that if the adjourned |
12 | | sale is to occur less than 60 days after the last scheduled |
13 | | sale, notice of any adjourned sale need not be given |
14 | | pursuant to this Section. In the event of adjournment, the |
15 | | person conducting the sale shall, upon adjournment, |
16 | | announce the date, time and place upon which the adjourned |
17 | | sale shall be held or post on its website the date, time, |
18 | | and place upon which the adjourned sale shall be held . |
19 | | Notwithstanding any language to the contrary, for any |
20 | | adjourned sale that is to be conducted more than 60 days |
21 | | after the date on which it was to first be held, the party |
22 | | giving notice of such sale shall again give notice in |
23 | | accordance with this Section. |
24 | | (5) Notice of the sale may be given prior to the |
25 | | expiration of any reinstatement period or redemption |
26 | | period. |
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1 | | (6) No other notice by publication or posting shall be |
2 | | necessary unless required by order or rule of the court. |
3 | | (7) The person named in the notice of sale to be |
4 | | contacted for information about the real estate may, but |
5 | | shall not be required, to provide additional information |
6 | | other than that set forth in the notice of sale. |
7 | | (d) Election of Property. If the real estate which is the |
8 | | subject of a judgment of foreclosure is susceptible of |
9 | | division, the court may order it to be sold as necessary to |
10 | | satisfy the judgment. The court shall determine which real |
11 | | estate shall be sold, and the court may determine the order in |
12 | | which separate tracts may be sold. |
13 | | (e) Receipt upon Sale. Following Upon and at the sale of |
14 | | mortgaged real estate, the person conducting the sale shall |
15 | | give to the purchaser a receipt of sale. The receipt shall |
16 | | describe the real estate purchased and shall show the amount |
17 | | bid, the amount paid, the total amount paid to date and the |
18 | | amount still to be paid therefor. An additional receipt shall |
19 | | be given at the time of each subsequent payment. |
20 | | (f) Certificate of Sale. Upon payment in full of the |
21 | | amount bid, the person conducting the sale shall issue, in |
22 | | duplicate, and give to the purchaser a Certificate of Sale. |
23 | | The Certificate of Sale shall be in a recordable form, |
24 | | describe the real estate purchased, indicate the date and |
25 | | place of sale and show the amount paid therefor. The |
26 | | Certificate of Sale shall further indicate that it is subject |
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1 | | to confirmation by the court. The duplicate certificate may be |
2 | | recorded in accordance with Section 12-121. The Certificate of |
3 | | Sale shall be freely assignable by endorsement thereon. |
4 | | (g) Interest after Sale. Any bid at sale shall be deemed to |
5 | | include, without the necessity of a court order, interest at |
6 | | the statutory judgment rate on any unpaid portion of the sale |
7 | | price from the date of sale to the date of payment. |
8 | | (Source: P.A. 100-685, eff. 8-3-18.) |
9 | | (735 ILCS 5/15-1507.2 new) |
10 | | Sec. 15-1507.2. Online judicial sale. |
11 | | (a) The sheriff or other person may conduct the sale |
12 | | online in accordance with this Article. |
13 | | (b) The sheriff or other person may engage a third-party |
14 | | online sale provider to assist with performance of the online |
15 | | sale. Any third-party online sale provider engaged by a |
16 | | sheriff must be acquired through a process that confirms that |
17 | | the provider meets the requirements set forth in this Article. |
18 | | (c) In this Section, "third-party online sale provider" |
19 | | means any sale platform or services provider that is not the |
20 | | person conducting the sale or a party to the case involving the |
21 | | judicial sale and that is engaged by the person conducting the |
22 | | sale to assist with conducting the sale online in accordance |
23 | | with State law. |
24 | | (d) The sheriff or other person may charge an additional |
25 | | fee as a reasonable expense of the sale for costs associated |
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1 | | with conducting the sale online. |
2 | | (e) For any foreclosure involving residential real estate, |
3 | | the fee set forth in subsection (d) may not exceed $400, unless |
4 | | a higher fee is otherwise approved by the court. Any fees not |
5 | | charged as a cost in the case may be agreed to and paid |
6 | | directly by the judge, sheriff, other person conducting the |
7 | | sale or a party to the case without limitation. The fees |
8 | | charged under this Section shall not reduce or impact the |
9 | | sheriff's fees set forth in Section 4-5001 and 4-12001 of the |
10 | | Counties Code. |
11 | | (f) To conduct a sale online, the sheriff or other person |
12 | | conducting the sale must demonstrate to the court's |
13 | | satisfaction documented processes and procedures for |
14 | | conducting online auctions, adequate recordkeeping, and the |
15 | | ability to comply with the requirements in this Article. |
16 | | (g) If the sale takes place both online and in person, all |
17 | | bids accepted during the auction shall be simultaneously |
18 | | announced at the in-person sale and visible to the public |
19 | | online at the time the bids are placed. Any maximum bid amounts |
20 | | provided by bidders ahead of the sale shall not be visible to |
21 | | the public until the bid is placed. |
22 | | (h) There shall be no fee charged to the public to view |
23 | | properties for sale online or to participate in any auction in |
24 | | person or online. |
25 | | (i) Any third-party online sale provider may not maintain |
26 | | custody of sale funds on behalf of the judge, sheriff, or other |
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1 | | person conducting the sale unless specifically approved by the |
2 | | court to maintain custody of funds on their behalf. |
3 | | (j) The sheriff or other person conducting the sale shall |
4 | | require a person seeking to bid electronically online to |
5 | | complete a registration process that includes providing |
6 | | information relevant to properly identify the bidder, contact |
7 | | the bidder, and complete the sale of the property as |
8 | | determined by the sheriff or other person conducting the sale. |
9 | | (k) If the person registering to bid is an individual, the |
10 | | information required shall include the individual's name, |
11 | | electronic mail address, and telephone number. |
12 | | (l) If the person registering to bid is an entity, the |
13 | | information required in this Section shall include the |
14 | | entity's legal name, name of an individual contact person for |
15 | | the entity, electronic mail address, and telephone number. |
16 | | (m) The sheriff or other person conducting the sale online |
17 | | shall require all bidders who wish to participate in bidding |
18 | | online to have their identity verified through an |
19 | | identification verification process before a bid can be placed |
20 | | online, which may include verification through a government |
21 | | issued identification, biometric verification, or other method |
22 | | of verification as determined by the judge, sheriff, or other |
23 | | person conducting the sale. If a bidder's identity cannot be |
24 | | verified through the verification process, then the bidder may |
25 | | be prohibited from participating in the online sale. |
26 | | (n) The purchaser at the sale shall submit to the person |
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1 | | conducting the sale the following information prior to the |
2 | | sale being finalized: |
3 | | (1) All winning purchasers shall provide any required |
4 | | information to be checked against the federal Office for |
5 | | Foreign Assets Control sanction list by the person |
6 | | conducting the sale before finalizing the purchase of the |
7 | | property. The person conducting the sale shall check the |
8 | | winning purchaser against the sanction list before an |
9 | | order approving the sale may be entered. |
10 | | (2) If the purchaser is an individual, the information |
11 | | shall include the individual's name, physical mailing |
12 | | address, electronic mail address, and any other |
13 | | information requested by the person conducting the sale to |
14 | | adequately identify and contact the purchaser. |
15 | | (3) If the purchaser is an entity, the information |
16 | | shall include the entity's legal name, trade name if |
17 | | different from its legal name, state and date of |
18 | | formation, mailing address, proof of business registration |
19 | | with the State of Illinois, and the name of an individual |
20 | | contact person for the entity, electronic mail address, |
21 | | and the person's telephone number. |
22 | | (4) The purchaser must provide the sale deposit, if |
23 | | applicable, and the balance due to the sheriff or other |
24 | | person conducting the sale at least 24 hours after the end |
25 | | of the sale, unless otherwise set forth by the sheriff or |
26 | | other person conducting the sale, in the form designated |
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1 | | by the sheriff or other person conducting the sale. |
2 | | (5) If the purchaser fails to provide the required |
3 | | information within the time period designated by the |
4 | | judge, sheriff, or other person conducting the sale, the |
5 | | purchaser is in default and the judge, sheriff, or other |
6 | | person conducting the sale may void the sale and proceed |
7 | | with a resale. |
8 | | (o) Any person conducting a sale online must maintain |
9 | | evidence of satisfactory internal informational security |
10 | | controls that meet industry standards and are maintained by |
11 | | the platform used to conduct online sales. Such evidence of |
12 | | satisfactory internal controls regarding data security may be |
13 | | in the form of an annual SOC 2 Report certification, with the |
14 | | ability to test and report on the design effectiveness (Type |
15 | | 1) and operating effectiveness (Type 2) of the platform's |
16 | | controls, or another form ensuring performance and security |
17 | | requirements are met. |
18 | | (p) The person conducting the sale and the third-party |
19 | | online sale provider may engage in activities to promote and |
20 | | market the sale to encourage and facilitate bidding, including |
21 | | listing the property on real estate websites and conducting |
22 | | email campaigns. The person conducting the sale or the |
23 | | third-party online sale provider is solely responsible for |
24 | | paying all fees or expenses incurred in connection with such |
25 | | activities. |
26 | | (q) In every sale conducted online of residential real |
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1 | | estate, (1) the sale may be held open for bidding for up to 3 |
2 | | days and extended by the person conducting the sale as needed |
3 | | to allow for all active competitive bidding to occur, counted |
4 | | in accordance with Section 1.11 of the Statute on Statutes; |
5 | | and (2) bidding shall be open to everyone for the entire |
6 | | duration of the bidding period. |
7 | | (735 ILCS 5/15-1510.1 new) |
8 | | Sec. 15-1510.1. Third-party purchaser fees and costs. |
9 | | Notwithstanding any other provision of law to the contrary, |
10 | | for the sale of residential real estate, no fee, including a |
11 | | buyer's premium, may be charged to a third-party bidder or |
12 | | purchaser who is not a party to the case at the sale of real |
13 | | estate under this Article beyond the winning bid amount to |
14 | | cover an expense of conducting the sale. |